The U.S. Congress passed the Federal budget, repealing the embargo on oil exports

The U.S. Congress passed the Federal budget, repealing the embargo on oil exports

WASHINGTON, December 18. /Corr. Anatoly Bochinin/. The Senate at the meeting adopted the draft Federal budget for the 2016 fiscal year, which also included a provision repealing in effect for 40 years the oil embargo. For this decision voted by 65 senators and 33 members of the house voted against it.

The total budget is 1.1 trillion dollars. Position on the abolition of the oil embargo was included in the text in the process of negotiation between Democrats and Republicans, who made this initiative.

New financial year began in the US on 1 October, but the state budget has not been approved, the Federal ministries and departments were funded on the basis of temporal resolution, the effect of which was extended several times, to prevent a government shutdown. In the adopted document provides for the financing of a number of Federal agencies, including the state Department and the Ministry of national security. However, this package does not include the Pentagon’s budget, it was adopted earlier separately.

In addition, the senators supported approved Thursday by the house of representatives a bill on tax incentives. In particular, it provides relief for companies engaged in research and development, as well as for low-income families, students and the working homeless. In addition, the write off can expect construction companies applying energy saving technologies in the construction of housing to improve its effectiveness. The total amount of all write-offs will amount to 680 billion dollars. The bill was part of an overall budget agreement between Democrats and Republicans.

Now these documents are submitted for signature to the President of the United States, which probably will sign them today, as in the evening the head of state with family serving in the vacation period of Christmas holidays.

Earlier, the House of representatives of the U.S. Congress approved the lifting of the ban on exporting American oil.

Forty-year ban

A ban on the supply of crude oil from the US abroad, in the form of Federal law, in force since 1975.

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Experts: the lifting of the ban on oil exports from the U.S. will moderately affect the prices

This legal act was prepared after the establishment of the Arab States embargo on oil supplies to Western countries in 1973. Natural gas abroad, US companies can supply only under licences issued by the government. American firms are free to supply to other countries coal and petroleum products, including gasoline. Last year the EU openly acknowledged that Brussels is seeking from Washington in the framework of the transatlantic free trade area start exporting oil and gas to Europe.

Over the past two months, the house of representatives twice voted for the Republicans presented a bill lifting the ban on exporting American oil, but the initiative in both cases was not supported by the Senate.

“It is not the policy that we support, but it will not prevent the President to sign the bill”

U.S. President Barack Obama still supports a negotiated on Capitol hill a proposal to repeal the ban on oil supplies from the US abroad, but batch is ready to sign the budget bill can become part of this initiative. This was stated on Wednesday at a regular press briefing White house press Secretary Joshua Ernest.

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Bloomberg: leaders of the U.S. Congress agreed to lift the ban on oil exports from the country

“It is not the policy that we support, but it should not prevent the President to sign the bill,” – said the official representative of the American administration.

According to Ernest, “we (the Executive branch of the USA – approx. correspondent.) still not supported” is a requirement to lift the ban on the unrestricted sale of American oil to other States. However, the objections of the US administration on this issue are essentially “procedural” in nature, said the representative of Obama. As he said, the U.S. government believes that it already has powers in certain circumstances, to allow the export of oil. “We believe that (new) legislation is not necessary”, – said Ernest.

In this regard, he recalled that “the United States will export 4.3 million barrels of refined petroleum products per day”. In addition, reservations in current U.S. law allows domestic companies to deliver abroad “500 thousand barrels of crude oil per day,” added White house press Secretary.


Oil prices for 30 years